Cyprus proposes no charge on small account holders

NICOSIA, Cyprus – Cypriot finance officials are revising a planned financial bailout to relieve small account holders from having to pay a charge on their savings in order to secure an international rescue of the country's troubled banks.

Under a new draft bill discussed in Parliament's finance committee Tuesday, deposits below euro20,000 ($25,900) would be exempt from any charge. Those between euro20,000-euro100,000 would have a 6.75 percent levy imposed, and those above euro100,000 would have a 9.9 percent charge.

European officials have said euro5.8 billion of the euro15.8 billion rescue package must be raised by Cyprus.

The country's central bank governor recommended that no levy be imposed on accounts below euro100,000 -- the amount that is insured by the government.